NSR -1.22%: Soft in a strong market due to a financing deal they announced this morning for $300m of exchangeable notes paying a 3.125% – 3.625% coupon with the proceeds to be used to repay higher cost debt, fund further growth and diversify funding sources. As a consequence of the transaction, there was stock placed at $2.37 as a delta hedge, and without going into the specifics (not needed), that would have been the catalyst for some weakness early on today. That said, the deal makes sense and, together with the recently announced Ventures JV with GIC, should provide short-term earnings support as NSR ramps up on the development front.
- Todays funding deal is a net positive for NSR
MM remains long & bullish NSR
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